$1$

Exercise $6-1($Algo$)$ Variable and Absorption Costing Unit Product Costs $[$LO$6-1]$

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $$875.$ Selected data for the company's operations last year follow:

Units in beginning inventory

Units produced

Units sold

Units in ending inventory

Variable costs per unit:

Direct materials

Direct labor

Variable manufacturing overhead

Variable selling and administrative

$0$

$14,000$

$11,000$

$3,000$

$$220$

$$410$

$$46$

$$16$

Fixed costs:

Fixed manufacturing overhead

Fixed selling and administrative

$$960,000$

References

Required:

Assume the company uses absorption costing. Compute the unit product cost for one gamelan.

Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.

Assume the company uses variable costing. Compute the unit product cost for one gamelan.

$\backslash$table$[[1.$ Absorption costing unit product cost,ff$],[2.$ Variable costing unit product cost,$]]$